I 100% agree with the notion of not allowing the loan to be forgiven. Don’t you? After all if an adult made the conscious decision to take the easy path and get loans should they not be required to pay back that loan? As to the % of the note isn’t that up to what the market will bare? Perhaps if the government stopped backing 80% of loans we could see some various market solutions. Perhaps you’d see more investors actively trying to assist the student in finding slid placement, in a career to help pay that loan off, as they are an investor in that person after all.
Education is something that can’t be sold off on auction for the creditor to recoup the money. So why should it be lowered or forgiven based on the original agreement. They signed the papers and they are big girls and boys aren’t they?
I go back to the root of the problem. It’s not the loan rates it’s the perpetual increase in the cost of education. Its also the rather easy access to money both foreign and domestic. It’s the influx of foreign students who can come here and pay full price, and it’s our allowance to have them fill slots in the hope they will stay and be productive, many do but I believe most do not. (a guess)
As sure as we have seen a bubble in housing that has still not corrected enough in many areas, we are seeing a education bubble. And lowering the rates doesn’t help it just delays. Students working at McDs with a masters in English or some other near useless degree is sad, but in the ever push to appease our children no one explained to them what they would be qualified to realistically earn after graduating or they failed to read journals on job and skill demands, again the fault of the person. After all if they went into a high demand field they would have the money to quickly pay their loans.
To top it off, why kids don’t use the military for school assistance is beyond me. In many cases it can teach many of the self-absorbed narcissists something of service. actually provide for teaming in a interesting job, and give them money and free schooling.
Once a contract is struck it must be honored by honest men, or the result is decay and erosion of trust.
What had been a discussion of interest rates was turned into an argument to force instant collection on the loans.
Again, these loans are like gold ~ to the lenders. Even with market based interest rates ALL education loans should be charged little more than 2 and 3/8 percent. The fact that most of them are charged FAR HIGHER rates is evidence of usury that should be criminalized.